Land resources are compensated according to the:

Question

Quizplus · Accepted Answer

Land resources are compensated according to the value of the marginal product of land. This means that the compensation is based on the additional output or revenue that can be gained from using an additional unit of land. The absolute level of production or the number of laborers it can support may be factors that affect the value of the marginal product, but they are not the sole determinants of compensation. The purchase price of the land stock is also not necessarily related to its value in terms of its productivity or potential output.

Land Resources Are Compensated According to The